Spurring Spud Sales

What is a Thanksgiving meal without a side of mashed potatoes? Is Christmas dinner complete without a helping of cheesy potatoes? Would lighting the candles on the first night of Hanukkah be the same if latkes were not on the table? 

There is no denying it; potatoes have become essential to the many holiday meals eaten around the country—and grocery store sales prove that. But seasons change, and the time for peak potato sales has come and gone. However, retailers can look to the innovative products and packaging improvements that growers are introducing, along with support from commodity boards, to keep sales in the category alive during slower sales months.

Industry observers say that although retailers may experience a dip in potato sales after the holidays, potatoes remain a very popular dinner item. In fact, Sarah Reece, global marketing manager for Denver-based Potatoes USA, says potatoes are second only to poultry among the general population at dinnertime.

“Even with consumers eating out for dinner more often than last year, potatoes still have a strong place on the plate during dinners at home,” Reece says. “Although baked, fried and mashed are still the most common preparation methods, consumers appear to be cooking potatoes in an increasing variety of ways.” 

Perhaps that experimentation can be attributed to the hard work that growers and commodity boards have done to supply and share creative recipes with consumers. An intriguing recipe can inspire a consumer to add potatoes to their shopping list. However, if quality potatoes are not presented on the shelf, the purchase plan could change course for many shoppers, observers say. 

“Beyond taste, which is always the No. 1 attribute that consumers are looking for, most of the other features revolve around quality,” says Rob Myers, director of sales and marketing at J.R. Simplot Co., based in Boise, Idaho. “Black spot bruise is still the top consumer complaint. Generally, consumers are looking for a consistent, high-quality potato at a reasonable price.”

White Russet potatoes offer a solution to quality issues, Myers says. The potatoes have reduced bruising and black spots so there is less perceived spoilage, “leading to a potential waste savings of up to 400 million pounds in supermarkets and restaurants each year,” he adds. White Russet potatoes are now available in 5- and 10-pound bags from Potandon Produce and RPE. 

“This is an exciting new category because it is the first time that there has been a low-bruising, reduced black-spot potato that stays fresher-looking longer,” Myers says. “Consumers use more of what they pay for, and they’re more convenient because potatoes can be peeled and cut in advance without the need for soaking to prevent browning.”

In addition to offering White Russet potatoes, Potandon Produce is working to find solutions to another issue in facing category—potatoes turning green as a result of being exposed under bright lights. “Packaging is one area we are seeing updates in the category,” says Ralph Schwartz, vice president of sales for the Idaho Falls, Idaho-based company. “We’ve recently launched our new light-blocking packaging.”

Potandon’s Light-Blocker Half-N-Half bags block out 99.5 percent of all visible and ultraviolet light rays, virtually eliminating product greening, say company officials. The bags also reduce dehydration/weight loss and sprouting incidences. The Light-Blocker bags are available in 3- and 5-pound Green Giant yellow potatoes, 5-pound Klondike Goldust, 5-pound Green Giant white potatoes, 3- and 5-pound Green Giant red potatoes, and 5- and 10-pound Green Giant russets in both Idaho and non-Idaho bags. 

Russet potatoes account for nearly 50 percent of the category dollar share, which typically leads retailers to give the spud special attention, but can stunt growth the overall category, says Don Ladhoff, director of fresh marketing and sales for Black Gold Farms, based in Grand Forks, N.D. 

“Retailers often put too much emphasis on displaying and advertising russet potatoes, depressing overall category sales dollars and blunting shopper interest,” he says, noting that red potatoes continue outperform in the category. “Given that red potatoes draw attention with their healthy red color while retailing for an average of 62 percent greater dollars per pound, it only makes sense to showcase red potatoes prominently on a retailer’s potato table.”   

Black Gold Farms specializes in red potatoes that are grown on company farms in six states to ensure a year-round supply for customers. The company recently introduced a 3-pound boil-in-bag of red potatoes and will launch its REDVENTURE campaign in 2017, which celebrates the strong link between red potatoes and more adventurous cuisine. 

Value-added packages that target a growing number of consumers looking for single-serve portions are also trending in the category, says Eric Beck, director of marketing for Wada Farms Marketing Group, based in Idaho Falls, Idaho. Wada Farms offers a full line of potato varieties ranging from russets to varietals to value-added products, and the company’s newest product, Quickies, fits into the single-serve trend. 

“It is a single-serve portion of potatoes packaged in an on-the-go format,” Beck says. “Consumers will have the choice of either bite-sized red or yellow potatoes that will be ready to eat after 3-4 minutes in the microwave.” 

The Little Potato Co. is also serving up microwave-ready potatoes. The company, based in Edmonton, Alb., Canada, is focused on bringing its proprietary creamer potatoes to consumers, says Angela Santiago, co-founder and CEO. “Our Microwave-Ready and Oven|Grill-Ready Creamers with various seasoning packs are incredibly popular,” she says. 

Even with an arsenal of innovative potato items on the shelf, observers say retailers can still misstep in merchandising and marketing the category. “Often we see retailers display bags upside down or under bright lights creating green potatoes resulting in higher shrink,” Myers says. “This is obviously easy to correct through proper training.” 

Providing proper training can be difficult for some stores, which is why Potatoes USA recently launched a video series to train produce associates in the category. “A lot of what we’ve been hearing from the retail sector is there’s a lot of turnover in the produce category,” says Ross Johnson, global retail marketing manager for Potatoes USA. “They don’t know how to properly handle potatoes to ensure that they’re living for as long as possible and also recognize when a product shouldn’t be on display anymore. So what we’ve done is we’ve created a five-part video series that associates can take in order to learn the whole process from field to them selling the potato in the store.”    

Capitalizing on commission programs like Potatoes USA’s training program or the Idaho Potato Commission’s (IPC) Potato Lover’s Month Retail Display Contest, would be beneficial for retailers looking to boost the category. During IPC’s Potato Lover’s Month Retail Display Contest, participating retailers are encouraged to incorporate clearly marked fresh Idaho potatoes (bag, bulk or both), an Idaho dehydrated potato product and HORMEL Real Bacon Bits, along with IPC’s 2017 contest point-of-sale materials, in a display for a chance to win one of six grand prizes of an all-expenses-paid vacation for two on Celebrity Cruises. Retailers compete with other same-size stores in three categories for the grand prize or second-, third-, fourth- and fifth-place cash prizes. A selection of honorable mention winners will also receive a cash prize. 

The contest will run for nine weeks from mid-January to mid-March. “February is traditionally a slow month for produce—not just potatoes but produce. It’s also a slower month for potatoes, but it is a slow month for produce in general, so by having a display contest, it draws consumers into produce section,” says Seth Pemlser vice presidentretail/international for Eagle, Idaho-based IPC. “When consumers are in the produce section, they don’t just buy potatoes. It draws attention to things that are available in the produce section as produce becomes more available year round.”

The Wisconsin Potato and Vegetable Growers Association (WPVGA), based in Antigo, Wis., also runs a display contest for retailers. The promotion, which was held during the month of October, awarded a Harley Davidson motorcycle to its first-place winner. The WPVGA Promotions Committee works with shippers to provide certain materials to their customers, says Dana Rady, director of promotions, communication and consumer education for WPVGA. 

“To date, we have designed kwik lok tags that say ‘Wisconsin Potatoes’ on them. These are beneficial for consumers as they help people more easily recognize potatoes from the Badger State,” Rady says. “Retail stores also like them because they don’t add another SKU. Additionally, we have designed quarter-sized bins that sport a buy local message. These bins are the perfect size for retail stores to use as endcaps or as a cross promotion between potatoes and another item in the store. Both the bins and the kwik lok tags have proven highly successful in increasing sales at various retail stores throughout Wisconsin and the Midwest.”